Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Indian Economy:1950-1990

Question:

What does the government provide in a mixed economy?

Options:

Only essential goods and services

All goods and services

Goods and services based on profitability

Goods and services based on consumer preferences

Correct Answer:

Only essential goods and services

Explanation:

Most economies are mixed economies, i.e. the government and the market together answer the three questions of what to produce, how to produce and how to distribute what is produced. In a mixed economy, the market will provide whatever goods and services it can produce well, and the government will provide essential goods and services which the market fails to do.